Egypt’s stock exchange is reportedly planning to list a mutual fund focused on African government debt as part of an effort to promote cross-border trading of African securities.
The African Development Bank (AfDB), has been pressing the Egyptian Exchange (EGX) and other bodies within Egypt’s financial market to provide the fund with a public listing.
The fund invests in government debt instruments within eight different African countries.
A listing would be in line with the African Financial Markets Initiative, which is designed to strengthen Africa’s various stock markets and make them more competitive within the global market.
By increasing cross-border connectivity, it is hoped that this will lead to more listings and greater liquidity, thereby attracting more international investors. Alongside the listing of pan-African funds, the initiative also includes plans to electronically link the region’s exchanges.
Mohamed Farid, chairman of EGX, said that the exchange is open to including any financial instrument that could attract new investors as long as they comply with its rules and procedures.
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